UK wholesale gas prices reached a four-year high on 9 September 2026, with the wholesale cost of fossil gas approaching 200p per therm as of 1300 that day, according to the End Fuel Poverty Coalition1. The level was last seen in December 20221. Heating oil prices have also exceeded the previous five-year highs, which were set at the start of the US-Israeli attacks on Iran1.
The coalition attributed the gas price rise to Qatar implementing a suspension of LNG shipments, with European storage sites sitting below the seasonal average as the heating season approaches1. It said surging oil and gas prices since the start of the US-Iran conflict on 28 February have added an estimated £5 billion in higher gas and electricity costs, and that a handful of firms made £6bn on UK operations in the first six months of 20261.
The movement comes alongside confirmed changes to regulated domestic tariffs. Ofgem has announced that energy bills will increase for a majority of customers from 1 October 2026 as gas unit rates rise 27% year on year, the highest level since early 20231. Electricity unit rates are being held roughly stable, helped by the Government cutting VAT on electricity1.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said:
"The wholesale cost of gas has hit a high not seen since December 2022, while heating oil prices have also surged upwards again."
He added that the January price cap is being calculated on prices like these, and that households using heating oil, or on some heat networks and not on the price cap, may see increases sooner1. The coalition also said Ministers cannot control the markets but can decide how exposed bills are to them1.
| Measure | Change reported |
|---|---|
| Wholesale gas, 9 September 2026, 1300 | Approaching 200p/therm, last seen December 20221 |
| Gas unit rates from 1 October 2026 | Up 27% year on year, highest since early 20231 |
| Electricity unit rates from 1 October 2026 | Roughly stable, helped by VAT cut on electricity1 |
| Heating oil | Above previous five-year highs1 |
Why it matters for households
Wholesale prices feed into the Ofgem price cap with a lag, so the levels recorded on 9 September sit inside the calculation for the next cap period rather than the one starting 1 October1. That means the October rise in gas unit rates was set before this latest surge, and further wholesale movement would show up later. For homes off the gas grid, heating oil has already moved above its previous five-year high, and the coalition notes that heating oil users and some heat network customers are not covered by the price cap, so changes can reach them sooner1. The gap between gas and electricity unit rates is also relevant to any household weighing how its home is heated and powered, since electricity rates are being held roughly stable while gas rates rise1. Wider context on how wholesale costs pass through to domestic bills sits in the site's UK domestic energy prices over time guide, and the underlying deployment and price figures are collected in the UK home energy statistics guide. Heating oil users can find price data in the heating oil and LPG price data guide.
What happens next
The next price cap period reflecting these new prices will be announced in late November and come into force on 1 January 20271. The coalition said the Chancellor should use the Budget to break the link between gas prices and electricity bills, fund debt relief and targeted support for households this winter, and back long-term energy efficiency measures1. No date for that Budget is given in the source, and no further detail on the measures it might contain has been reported1.
Sources1 cited
- UK gas prices hit 4 year high in fresh market surges - End Fuel Poverty Coalition, endfuelpoverty.org.uk